but daimler is out of the doldrums.rises after beating estimates for the third quarter. tesla keep the pressure on european rivals after a surprise boosts shares 20% in late trading. watch tesla this morning as well. welcome to the bloomberg markets: european open. i am matt miller in frankfurt here for the ecb meeting alongside anna edwards in london. anna: this is really interesting. you are there for the ecb, we need to talk about the riksbank. they leave the key rate unchanged at minus 0.25%. talk by the bank about trying to normalize these negative interest rate and push them back towards zero. yet there was a lot of skepticism they would do that, and indeed they haven't. you can see the movement as a result there against the euro. but what's interesting is they are saying the rate will probably be raised in december to 0%. so the guidance we've previously had, and in september they said they were penciling in a rate hike around the end of the year. maybe any expectations today were premature. but it's interesting

it seems it is not an issue with daimler but other issues as a whole. renault in a similar situation is that how you are distinguishing the name. are they generating the positive cash flow. next year will be the 11th year of the auto cycle. you expect balance sheets to be much stronger. that is not always the case. that is the case for bmw, renault has the worst balance sheet. it is an unusual situation usually at this stage, you expect to have the balance sheet across the stage you want to have a better balance sheet to cope with that. we are seeing auto stocks up about 1.4% i can't help but think a lot of this is tied to what we see in tesla. up 20%, there had been many concerns around tesla here do you think a lot of what we heard around that story. we had those numbers before good across the board the cash flow is solid they are telling me now the model will be early. the shanghai plan is a bitterly. that is a change in the running of the business. it seems to be operating smoother than we had been for years. you think the change has been happening

in europe, results for daimler hit imminently. mario draghi takes to the stage for the final time as ecb president. for then frankfurt divided governing council. the e.u. leaves boris johnson hanging. the french president will demand any delay last only 15 days. welcome to "bloomberg daybreak: europe." earnings season, here we go. to this, crossing the bloomberg. it is raising its full-year 3.5 to 3.55ld to euros. that is the headline at the moment. it is also announcing clearance for metadata, so that is that deal that was announced not that long ago and it is announcing clearance for that, so that's another headline coming through and it's also reaffirming its revenue target. those are the numbers coming through. coming up on bloomberg, the ceo joins us for his first interview of the day. we will get into a lot more details and talk about the industry as well. do not miss that conversation. speaking of industry, let's take a look at basf. third quarter adjusted ebitda, that is the red headline. 1.1 2 billion euros. estimate, 1.0

just a quick comment on daimler. the cash flow looks impressive. what is it doing right? side ofthe mercedes car the business. with daimler come up mercedes vehicles make a lot of money and they are starting to get some fraction. the concern on the horizon is what happens with diesel and that kind of thing but they are getting production issues cleared up they are getting sales improvements on the mercedes side. here, we will hear from the southwest ceo. we will talk about the outlook for business and all the issues going on with the boeing 737. and the biggest program on this network, we will speak with bill and mariothe ecb draghi. this is bloomberg. ♪ ♪ guy: i'm guy johnson. >> i'm romaine bostick and this is bloomberg markets. time now for bloomberg business flash and a look at some of the biggest business stories going on right now. sales in the revenue forecast falling far short of estimates. itster says that advertising business will keep having an impact on daily act of users. the ceo mike roman says the macro environment remains challenging and american airlines

carol: and daimler's designers on leading the way to sustainable luxury.his is "bloomberg businessweek." ♪ carol: welcome back to "bloomberg businessweek." kailey: you can also listen to bloomberg businessweek live on the radio on sirius xm channel 119, and on a.m. 1130 in new york, 106.1 in boston, 99.1 f.m. in washington, d.c. carol: also, a.m. 960 in the bay area, london on dab digital, and of course, on the bloomberg business app. tesla surprised markets with earnings at the most in years. they are also producing vehicles at the shanghai giga factory. kailey: if elon musk delivers the first chinese-made tesla model three for customers this year, it will be a rare case in which the companies famously scattered a ceo will hit one of his notoriously ambitious deadlines. >> the first foreign owned automotive plant in china. it's in shanghai and the factory was built in record time. it was roughly six months. carol: talk to us about the pace is all came together. kailey: from permits to car is ready to roll, how did it come together so quickly? >> china is

the comments distasteful and racist other companies including gap clothing marriott hotels and the daimler car group have been forced to apologize to china i think it's different they your mindset. in the western country you said 3 dumb of speech. in china we also have freedom of speach. but some areas. shouldn't it's a deeply. bottom line china seems to be saying that for those who rely on its money there are some lines which cannot be crossed joining us now via skype from manchester in the u.k. simon chadwick simon is a professor of sports enterprise itself a business school in manchester good to have you with us simon how do you see all of this playing out i mean the n.b.a. is a pretty big deal in china not only in terms of sport but in terms of jobs i was actually really surprised by this incident because the n.b.a. for best for the 2 decades now has not only invested a lot of money but has also invested a lot of time into their activities in china and this is really helped to not only boost the n.b.a. in china itself but also to bust basketball more generally and so what you'll typica

organization to have to apologize in the face of chinese anger in the past gap the marriott hotel group and daimlercar company have all had to backtrack the hong kong airline cathay pacific even sacked some of its staff who publicly supported the protests in hong kong because it was worried it was going to lose access to valuable chinese airspace analysts say anyone who accepts chinese investment should be aware of china's sensitivities he crossed the line. and then witches. and many. swans are in vast oil from overseas they know it they know it shouldn't you know no one should say china is not the only country to use investment as leverage the critics say that when the n.b.a. has been faced with a choice between freedom of speech and the risk of losing billions of dollars china's money talks rob matheson al-jazeera beijing. your child is there with me as a whole romney a reminder of our top stories the turkish military has carried out strikes targeting the syrian iraqi border the aim to prevent kurdish forces using the route to reinforce north eastern syria as a prepares to launch an offensive. al

the comments distasteful and racist other companies including gap clothing marriott hotels and the daimler car group have been forced to apologize to china i think so different they your mindset. in the western country you said 3 dumb of speach. in china we also have freedom of speech. but some areas. shouldn't it's a deeply. bottom line china seems to be saying that for those who rely on its money there are some lines which cannot be crossed joining us now via skype from manchester in the u.k. simon chadwick simon is a professor of sports enterprise itself a business school in manchester good to have you with us simon how do you see all of this playing out i mean the n.b.a. is a pretty big deal in china not only in terms of sport but in terms of jobs. i was actually really surprised by this incident because the n.b.a. for the best for the 2 decades now has not only invested a lot of money but has also invested a lot of time into their activities in china and this is really helped to not only boost the n.b.a. in china itself but also to bust basketball more generally and so what you'll typ

daimler reporting third quarter earnings that beat estimates.cost does cover the cost of the diesel emissions scandal may not be enough. shares of nokia falling the most since 1991. the maker lowering its earnings guidance for this year and next, and halting dividend payments. they are delaying an earnings boost from 5g mobile networks. microsoft reported quarterly sales profits that were better than expected, getting a boost from its demand for the azure computing program, the demand rising 25%. tom: thank you so much. kate moore with us of blackrock. gordon johnson with us. rodjohnson is a lightning for the tesla acolytes. he has been cautious on the path forward. one quarter up, one quarter down. we have another quarter. do you see a new sustainability? gordon: i think we go back to the jack's -- johnson outlook. this quarter looks similar to last year. what happened is you had a bunch of unexpected profit that came in, but if you look underneath profitd, effectively the is not quarter vintage. there is 26 million and other which wecluding fx

exactly what is expected a big reason for the move higher in germany, earnings from industry bellwether daimler%, beating analyst forecasts, despite macro economic head winds. but warned that 2019 earnings would be significantly below 2018 levels, citing weakness in the mercedes-benz truck division one notable underperformer, nokia. plunging 20% after cutting the full year forecast for 2019 and 2020 wiping out gains for the year. citing tough competition in 5g markets and competitive pressure from china in particular i think we know which 5g player they're referring to. >> i have a hunch. thank you. >>> time for a news update sue herera has that. also at hq sue? >> indeed i do, jon. thanks so much here is what's happening at this hour, everyone mark esper lashing out at turkey for its military assault across the border and syrian kurdish fighters he spoke at the german marshall fund in prbrussels saying turkey is running the wrong direction, closer to russia. >> turkey put us in a terrible situation. the incursion was fixated on for one reason or another, there was not a possibility we were sta

but bmw and daimler did all right. 34.nce between bmw and mercedes sales in the month of september. they outsold mercedes by a grand total of 34 cars. net and neck. -- neck and neck. anna: that is a granular -- is granular. what is the bigger picture? is it about weakness in the confused byare they the move away from traditional cars into electric? it's probably a bit of all of that. it shows that if you are not top of the game in terms of your model lineup, if you have cars out there that feel dated, you will be punished quite mercilessly. we saw it with audi. their cars have been around for a while and they are real volume covers. you see it with volkswagen. if you are coming out of a model cycle and have not introduced the new cars yet, that is really going to hurt you. we see somemercedes of those very expensive suv models selling incredibly well. low volumes, maybe, but it's a very expensive car. if you have a new car out, people will still smack that up. but there is still a wait and see atmosphere. volkswagen,ntione

porsche, daimler, mercedes and audi which owns a minority stake are exploring the options. discovery, disney, our sister company universal, are looking to provide the visuals. >> it's firts opportunity we've had to take the content we've been building and put it in place where consumers are. >> reporter: these experiences are likely to become more complex and mobile in the future >> i'm having a very hard time interviewing you and shooting demons at the same time. i have to admit. >> yeah. >> you look like you're having a lot of fun back there, contessa. is this really going to cut down on car sickness? we know how it is with -- >> the studies show when you can synchronize the movement of the vehicle and what you're experiencing that motion sickness can be greatly reduced or eliminated. the drivers, they have -- >> what did you feel is it true >> okay. well, i had had a very long uber ride from l.a.x. to universal pictures i was not a good test case i will say, typically i would not able to tolerate watching a movie in the back seat of my car. i can't be on my phone or work

they posted its best ever third quarter boosted by a strong performance in china daimler says they expectyear sales to increase despite, quote, challenging times. the auto maker may have to recall thousands of their sprinter vans due to concerns over potentially illegal engine software >>> willem, let's take a look how european markets are shaping up on this first day of the trading week and this after a very heavy trading week last week stock 600 ended down north of 3% so actually the mood is not that pretty as well this monday morning, despite a positive end to wall street on friday and a mixed session for asia over night. all of the four majors are in the red already. ftse 100 down .1 percentage point still the relative outperformer the german index is down .2 y orders coming out there, giving you yet another picture of a weak manufacturing industry in germany this morning as well cac down .2 and the italian index down a similar amount. let's switch and talk about foreign exchange friday after the payroll numbers came out, we saw the dollar dip a little bit and on the week the dollar a

organization to have to apologize in the face of chinese anger in the past gap the marriott hotel group and daimler car company have all had to backtrack the hong kong airline calculus ific even sacked some of its staff who publicly supported the protest in hong kong because it was worried it was going to lose access to valuable chinese airspace analysts say anyone who accepts chinese investment should be aware of china's sensitivities he crossed the line. and then which. many. swans are investor or partner from overseas they know it they know it shouldn't you know no one should say china is not the only country to use investment as leverage but critics say that when the n.b.a. has been faced with a choice between freedom of speech and the risk of losing billions of dollars china's money talks rob matheson al jazeera beijing students in bangladesh have staged a 2nd day of process following the death of an undergraduate 21 year old was allegedly beaten to death by ruling party activists the criticising the government online to have a child who has more now from the capital dhaka. hundreds of stories

organization to have to apologize in the face of chinese anger in the past gap the marriott hotel group and daimlercar company have all had to backtrack the hong kong airline cathay pacific even sacked some of its staff who publicly supported the protest in hong kong because it was worried it was going to lose access to valuable chinese airspace analysts say anyone who accepts chinese investment should be aware of china's sensitivities he crossed the line. and then which. many. swung. from overseas we know we know it shouldn't you know no one. china is not the only country to use investment as leverage but critics say that when the n.b.a. has been faced with a choice between freedom of speech and the risk of losing billions of dollars china's money talks rob matheson al-jazeera beijing. and a satirical american t.v. show has become the latest to spark anger in china after the show took aim at china's human rights record the cartoon shows south park produce an episode depicting prison camps and political indoctrination it also examines how hollywood would sell senses to appeal to the chinese market

almost all the gainers with the exception of asml, daimler, sap, are financial stocks, in the top 10least. the bottom 10, those taking the most away from the stoxx 600. smith and nephew at the top, down 3.7% this morning. keep an eye on what's going on there with smith and nephew. looking at the other losers, danone down 1%, unilever down almost 1%. these are the defensive stocks we looked at, that are not doing terribly well, but that's not necessarily a bad sign. deutsche of own and -- wonen, one of the big property owners in germany, down as berlin decides owners are not allowed to raise rent for the next five years, stocks like that will suffer. now, boris johnson will make a renewed attempt to win parliament backing for his brexit deal. the prime minister was forced to write to the e.u. seeking a three-month delay that he clearly doesn't want, after losing a crucial vote on saturday. but confidence is growing he has the support, even without that negotiating tool, of 320 mp's, the number needed to make progress this week, either through a so-called meaningful vote today, which i

the comments distasteful and racist other companies including gap clothing marriott hotels and the daimler car group have been forced to apologize to china i think so different they your mindset. in the western country you said 3 dumb of speach. in china we also have freedom of speech. but some areas. shouldn't facts but deeply. bottom line china seems to be saying that for those who rely on its money there are some lines which cannot be crossed joining us now via skype from manchester in the u.k. simon chadwick simon is a professor of sports enterprise itself a business school in manchester good to have you with us simon how do you see all of this playing out i mean the n.b.a. is a pretty big deal in china not only in terms of sport but in terms of jobs. i was actually really surprised by this incident because the n.b.a. for best for the 2 decades now has not only invested a lot of money but it's also invested a lot of time into their activities in china and this is really helped to not only boost the n.b.a. in china itself but also to bust basketball more generally and so what you'll typ

daimler up by 1.5% this morning and porsche as well, so we see some upside coming through on the auto sector in general. to the downside, interesting to see that renault is one of the biggest fallers, down by 3.7%. chances of a tie up there much reduced. bank santander also down. of results. deutsche bank also down on results. matt? european markets are opening lower in general. let's talk about the earnings picture from this morning to with our guest joining us now, of european, head equity strategy at ubs. let me get your take on the all important banks. we got credit suisse and santander out beating their course or -- third quarter estimates. deutsche bank coming out with the revenue that fell 4% at the core bank. in general, concerns across-the-board about the negative rate environment. how do you rate the earnings? nick: so sure, look. on the broader market, we have clearly seen earnings come down a lot year to date. the beginning of the year, around almost 9% earnings growth. the consensus numbers for this year have now fallen all the way down to 1%. there has been broader downg

telling me how they were trying to make batteries for other people and they said it was terrible daimler so we need a battery that can have zero fault tolerance. well, zero, it can have 5% or 2% we can do it at half cost. telling toyota no, no, this is what we have to do we have -- so it was done. tes tesla, what they do, they're able to act quickly. that's a big, big deal when you are trying to grow the way you are. >> andrew's got a question here, too. robyn, if you look at this question when you answer it. go ahead. >> thank you for that, becky you chair the company, obviously. you're also chair of the audit committee. i wanted you to speak, if you could, to some of the critics around the accounting at the company. and one of the questions that came up, tuckly this quarter, was this idea of -- that the company had a big profit swing, as you know, $550 million sequentially, but it did so on declining revenue. how does that happen and is that a repeatable event >> well, as we've talked about, the ompany's very focused on growth and very focused on cost reduction at the same time it's ve